USDJPY Weekly Forex Forecast – 27th to 31st August 2018
Fundamentals Outlook
Economic data for the week ahead will see only the U.S. second revised GDP estimates standing out. Data from Japan, Switzerland and the Eurozone take a backseat. Some of the economic reports from the U.S. will cover the personal spending and personal income data. The core PCE price index data will also be due this week. In the Eurozone, data will see the release of the German retail sales figures. Flash inflation estimates for the month of August will give preliminary insight into consumer prices for August. Data from Japan and Switzerland are light for the week ahead.
Chart set up: The USDJPY currency pair was seen breaking past the resistance level at 110.75. The reversal which eventually posted a breakout above this level pushed the currency pair briefly higher. However, the failure to test the lower support at 109.50 remains a considerable risk for the currency pair in the near term.
Key support/resistance levels:
Support: 11.57; Resistance: 111.55
Commentary:
The USDJPY currency pair reversed mid-way before the support at 109.50 could be tested. This reversal was led by a strong breakout from the resistance level at 110.75. By Friday’s close, the USDJPY currency pair pushed higher before slightly losing momentum just below 111.55. The currency pair could be seen extending the gains slightly toward 111.55 before easing back. The retest of lower support at 110.75 could be a possibility. In the near term, the USDJPY currency pair could remain flat, trading within the mentioned levels. In the event of a downside breakout, the currency pair could once again attempt to test the lower support at 109.50. For the week ahead, the USDJPY currency pair is expected to be bearish.
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